On the surface, shifting to automated systems might sound like an unnecessary expense for a barge transport business, and some might worry that these costs might never be recovered. But, there are good reasons why so many businesses across all industries are shifting toward these technologies–and why worrying about ROI doesn’t seem to get in their way.
When you dig a little deeper into what automated systems are capable of and how much manual data entry is actually costing you, it becomes pretty obvious why this shift toward automation is happening.
How Money Slips Through the Cracks with Manual Data Entry
Just because manual data entry doesn’t have an official price tag, doesn’t mean it isn’t costing barge companies a lot of money. There are a myriad of ways that manual data entry costs barge companies money, perhaps the most obvious being employee time spent on data entry. Data entry may not seem like a big time waster, but all of those minutes add up and also lead to other time wasters–which means that data entry is eating up more time than you think.
In addition to the time it takes to fill out forms, mistakes are more likely with manual data entry. Workers often spend time going back and fixing issues that arise from these mistakes. Then there is the problem of data retrieval in spreadsheets or, even worse, with paper logs. Finding specific information by shuffling through old papers or scrolling through spreadsheets can take far longer than it would to perform a simple search in an automated system. All of this extra time adds up fast and leaves more important work, like barge safety measures or maintenance, unfinished.
It’s not just valuable employee time that gets eaten up with the use of manual data entry. Money slips through the cracks in other ways too.
Costly Mistakes
Mistakes don’t just eat up time, they can also result in costly messes–or even disasters. For example, two towing vessels collided in 2020 due to an error in data entry. The first vessel’s automatic identification system (AIS) broadcast showed its length at 72 feet, but the actual length was 672 feet. The second vessel broadcasted a length of 200 feet, but the actual length of the 40-barge tow was 1,600 feet. A later report estimated 3 million dollars in damages and the loss of three workers.
Maintenance Issues
There are a lot of moving parts on barges and towboats, and to keep them functional for a long time, they need proper maintenance. Unfortunately, many maintenance logs are still done manually. This can lead to inaccurate system health indicators, like temperature or vibration parameters. And when workers are tired or overworked, they might hastily run through their checklists, jotting down imprecise numbers or ignoring anomalous readings.
According to Quality Magazine, it is common to see around 1% error when using manual data entry to calibrate mechanical or electronic devices, like those used in barge maintenance and operations. In a log with 20 data points entered during the calibration process, 1% error means every fifth calibration will include incorrect data.
Overlooking issues with mechanical systems or lax attitudes when it comes to keeping track of changes can result in costly repairs or reduced lifespan of the barge. Barges are certainly not cheap and neither are repairs, so keeping them in good shape for as long as possible should be a priority.
Customer Satisfaction
No matter what the industry is, customers want quick and efficient interactions. If manual systems keep them waiting around for cost estimations, invoicing issues, or information about where their cargo is, they are likely to get frustrated.
According to research by Versapay, 44% of mid- to upper-sized companies report at least a quarter of their invoices are delayed each month by inefficient processes, with 6% reporting more than three quarters of invoices delayed. These delays are reported to cost these companies at least $909,506 each month.
If a customer of a barge transport company consistently has errors in their invoicing due to manual data entry, they are causing their customers to spend extra time and money to get them fixed. If those same customers have an option to switch to a barge company known to have more efficient and accurate operations, they are likely to switch over. Obviously, bleeding customers is going to bleed revenue along with them.
Slow Embarkation and Disembarkation
The management of barge crew schedules, time tracking, and transfer of schedules to employees can be complex, especially for larger vessels. Manual data entry can prolong these processes, leading to miscommunications about scheduling, and causing delays and confusion. Ultimately, this takes up valuable shipping time and makes the overall function of barge operations less efficient.
Think Long-Term with Automated Systems
It is fairly clear how inadequate manual data entry can be. But, what about automated systems? Are they really that much better?
While the initial investment of switching to automated systems can be a little painful, they will pay for themselves over time. Thanks to the ever-evolving tech industry, pretty much every problem mentioned in the previous section can be improved–if not completely eliminated–with the help of an automated system.
Here are just a few improvements that barge companies can
expect with a switch to automation:
- Automating tracking of day to day activities in fleet management and towing operations, like mid-streaming a barge into the fleet, keeping track of its location and activities, and automatically invoicing the customer when it moves out of the fleet.
- Ensuring consistent and accurate billing, allowing companies to focus more on their operations and less on the administrative tasks.
- Setting up automated calculations for variable costs, like fuel, port fees, and distance traveled.
- Maintaining deck logs.
- Reminding workers to complete maintenance tasks.
- Streamlining crew operations by speeding up embark/disembark processes and shift changes, and reducing underpayment/overpayment issues.
When nearly all the processes involved in maintenance, barge operations, crewing, and invoicing become more efficient, less money is lost to delays, unhappy customers, accidents, and repairs. The cost of switching to automated systems can be made back quickly, and further savings can provide the opportunity of scaling your barge business over time.
BargeOps Tools for More Accurate Billing, Automated Logs, and More
BargeOps Terminal Management
BargeOps offers a terminal management module that helps barge operators reduce errors and streamline processes related to inventory management, cargo transfer rates and contracts, equipment logs, and billing. Essentially, it makes terminal operations run much smoother, ensuring customer satisfaction and keeping cargo safe and accounted for.
BargeOps Portal
To keep customers happy and reduce the amount of time workers spend sending emails and looking up records, BargeOps Portal automatically sends customers updates informing them about all their commodities and barges. And if that doesn’t work for the customer, you can authorize access to BargeOps via a web browser, so they can see information that’s pertinent to them. The information that you want them to be able to access is determined by which permissions are set by you.
BargeOps Crews
Our BargeOps Crews module helps barge operators address the complex logistics of managing barge crew schedules, embarkation/disembarkation, time tracking, and payroll. This helps keep barges on schedule by reducing schedule confusion and making sure crews are ready when needed. It can also help ensure that workers are paid on time and without errors in pay. This helps with employee retention, which is crucial in the midst of barge employee shortages.
Whatever your barge transport needs are, BargeOps can help streamline activities and help your company save money. Contact us today to find out more about our modules and schedule a demo.
